UK Lawmakers Want Shipbuilding Boost

Published 2:41 pm, Tuesday, April 26, 2016

British lawmakers urged the government Wednesday to increase its support for the country's once-proud shipbuilding industry in the face of punishing competition from Asia.

Legislators from all sides of politics called on the government to consider increasing investment and support to the declining industry.

Britain's once dominant shipbuilding industry has lost massive market share in recent years to countries such as Germany and South Korea, which benefit from protective subsidies.

South Korea last year won 38 percent of worldwide ship orders, compared to Europe's 16 percent.

The governing Labor Party's John Robertson, who initiated a parliamentary debate on the issue, said British shipyards could no longer compete.

"Has the time come to subsidize our industry and break European Union rules or should we consider ring-fencing our shipbuilding? Should we copy the Germans and upgrade our yards or should we consider the ultimate demise of the industry and buy from the cheapest market?" Robertson said.

"It is time to look at the industry as a whole and put together a policy for the 21st century."

Lawmakers called for the European Commission to take the case of South Korean subsidies to the World Trade Organization.

However, Liberal Democrat legislator Vincent Cable said the real problem was the strong pound and the Koreans' move to devalue their currency.

Trade and industry minister Alan Johnson warned shipbuilders faced a tough and competitive world market but said the government stood ready to help.